Any foreign firm or companies can progress with their business acts in Malaysia by two different steps, they are:
- Incorporating to a local firm or business entity with the Companies Commission of Malaysia (SSM).
- Registering the foreign firm in Malaysia (SDN BHD malaysia company) with SSM.
As per Companies Act 1965 (CA 65) a foreign firm can be defined as a corporation, association or a company that is incorporated outside Malaysia. They can also be defined as an unincorporated firm or business entity which has the capability to sue or get sued, acquire property of its own in the name by the secretary, directors or other officials who are duly appointed by the company itself and most important the business firm is said to have its principal or head office outside of Malaysia.
SOME IMPORTANT FACTS TO BE TAKEN IN CONCERN
A. REGISTRATION PROCEDURES
1. Application of Name Search
The need of regulation of name search is mainly performed to see if the proposed name given by the firm is available to be accepted by certain body of authority in Malaysia. The steps to be taken are given below:
(i) Form 13A of the CA must fully completed with accurate details and submitted (Request for Availability of Name) to SSM.
(ii) A payment of RM30.00 has to be made for each proposed name applied.
* Once SSM approves the name proposed by the foreign firm for registration, it is kept restrained for at least 3 months from the date of approval.
2. Registration Documents and its Lodgment:
Once the proposed name is approved by SSM it is important that all registration documents and legal papers must be handed over to SSM within 3 months from the data of approval. A entire fresh application for a name search should be performed again for failing to provide the asked documents within restricted time.
B. REGISTRATION DOCUMENTS AND OTHER LEGAL PAPERS.
Documents or legal contents that must be submitted to SSM for registration are given below:
(i) Certified or authorized document of the certificate of incorporation or registration of the foreign firm.
(ii) Certified or authorized do of the foreign company’s sanction, law or memorandum and other related issues that defines the association in separate.
(iii) Form 79 (Fully completed and provided with all valid information)
(iv) An authorized appointed memorandum or power of attorney in the name of the person (s) residing in Malaysia, who will be able to accept on behalf of the foreign firm itself any notices, warnings or announcement is issued to the firm itself.
(iv) Form 80 (Statutory Declaration by Agent of Foreign Company).
(v) Other additional documents i.e. the original copy of Form 13A, copy of the letter issued by SSM on the approval of the proposed name by the foreign firm etc.
C. REGISTRATION FEES
Registration fees shall be as per the payment schedule below:
|NOMINAL SHARE CAPITAL (RM EQUIVALENT)||FEES (RM)|
|Up to 100,000||1,000|
|100,001 – 500,000||3,000|
|500,001 -1 million||5,000|
|1,000,001 – 5 million||8,000|
|5,000,001 – 10 million||10,000|
|10,000,001 – 25 million||20,000|
|25,000,001 – 50 million||40,000|
|50,000,001 – 100 million||50,000|
|100,000,001 and above||70,000|
Some important facts to be taken in consideration:
- The amount of registration fees (for consoling), the official capital and shares of the foreign firm must be converted to the Malaysian currency (Ringgit Malaysia).
- Conditions In certain cases and the foreign business organization does not allocate any share capital, a flat rate of RM 1,000.00 must be paid to SSM.
D. COMPLETETION AND CERTIFICATE OF REGISTRATION
Once all the documents and paper works with valid information is provided to SSM by the foreign company, they will issue an authorized certificate of registration in the proposed name of the foreign firm or the business entity.